During the course of performing assignments, L. E. Peabody & Associates, Inc.
has developed numerous analytical tools, models and databases to meet the specific
needs of our clients. We continuously improve and enhance the usability of each
model and analytical tool in order to maintain state of the art processes. While our
proprietary models are specific to certain tasks, they are also sufficiently flexible
for application to a variety of assignments. Our proprietary models and databases
enable us to assist our clients to achieve significant improvements expeditiously.
Specifically, we have developed analytical tools, models and databases to assist
our clients, including, but not limited to the following:
- Forecasting indexes, rates, prices, fuel surcharges and costs
- Benchmarking a client's economic position vis-à-vis their competitors
- Negotiating and evaluating component parts of long-term versus short-term contractual
- Auditing costs, revenues and operations to determine compliance with stated objectives
- Developing variable cost of service for the movement of specific commodities over
specific railroads during past, present or future time periods using our personal
computer generated software
- Estimating the maximum reasonable regulatory rate levels based on stand-alone cost
principles utilizing our discounted cash flow model
- Developing line specific railroad maintenance of way expenditures utilizing our Speed
Factored Gross Ton formula (SFGT)
- "URCS"- (Uniform Railroad Costing System) is the industry standard costing system used by the STB for all regulatory purposes, including maximum rail rate cases.
L.E. Peabody & Associates, Inc.'s proprietary URCS costing model is used to develop and analyze railroad industry costs.
L.E. Peabody & Associates, Inc. was instrumental in designing the Rail Form A railroad costing system and its successor, the URCS model.
- L. E. Peabody & Associates, Inc. Railroad Operations Simulator (ROS) model
analyzes rail operations and capacity requirements. Our ROS model
dispatches trains using sophisticated meet and pass algorithms and incorporates
the specific terrain and track conditions that form the carrier's network, plus
the specifications of the equipment actually used by the carrier. ROS model simulations
can be used to identify system bottlenecks, to suggest capacity improvement and
operating plans, and to assess the impact of additional traffic on a rail network.
The simulation analyses provide management with critical information before any
capital expenditures or operational changes are made.
- L.E. Peabody & Associates, Inc. Computer Aided Railway Design System (CARDS) program calculates the items necessary to construct a rail line. Through an iterative process and given specific starting and ending locations, CARDS uses United States Geographical Survey data to identify the optimal route and quantify the obstacles faced, for example, grading requirements.
- Our Generation Asset Valuation (“GAV”) Model determines the real option value of power facilities and contracts by relying on "Monte Carlo" simulation. Inputs to the model are plant or contract operating characteristics, market prices, price volatilities and price correlations. Model outputs are asset expected values as well as probability distributions around asset expected values so that asset risks can be assessed. The GAV model is used to support asset decisions related buy/sell/retire, capital additions, and risk management strategies.